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Take-Out Commitment
- Written offer by a lender to make long-term, "permanent" financing on a project after certain conditions have been met; often needed by builders or developers involved in building subdivisions. A take-out commitment is often needed in order to arrange construction financing with an initial lender. The commitment provides additional assurance that the construction financing will be repaid once the project is complete, even though
not necessarily all units have been sold. A lender making a take-out commitment usually charges a non-refundable fee, payable when the commitment is made. See also, construction-perm loan.
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Take-Out Loan - Long-term ("permanent") financing for real estate that is made after construction is completed.
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Tax Map - Unofficial map of
a tax assessor's office that shows approximate shapes and sizes of parcels of
land for a given area. Contrast with plat map.
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Tax Reserves - See reserves.
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Teaser Rate - Initial interest rate of an adjustable rate loan or credit account; a short-term rate often set substantially below the interest rate that will result from the first interest rate change. Sometimes called an "initial interest rate" or "starter rate." See also, adjustable rate mortgage.
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Tenancy By The Entirety - Co-ownership
of property in Oregon between a married couple only. With property held by
tenants by the entirety, when one spouse dies, that spouse's interest in the
property effectively dies too, and the other spouse automatically acquires
full ownership of the property.
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Tenancy In Common - Co-ownership,
or vesting title, where co-owners do not have a right of survivorship. An
interest in the property by one owner can be willed to someone else who is not
an owner of the property.
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Termite Inspection - See pest
& dry rot inspection.
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Third-Party Origination - Process by which a lender
or mortgage broker uses another party to completely or partially originate, process, underwrite, close, fund, or package
a mortgage to be sold on the secondary mortgage market.
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Thrift - Depository
institution, such as a savings bank or savings and loan, that primarily serves consumers.
Thrifts originate and service mortgages, and may often choose to hold their
mortgages in their own portfolios, but they do sell some loans to investors.
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Title
- (1) Entitlement, or
claim, of rights accompanying ownership of real property, especially as evidenced by
possession of a deed; the legal right to enjoy the
benefits of a specific real property. (2) Legal document evidencing a person's
ownership of a motor vehicle.
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Title Company - See title
insurance company.
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Title Insurance Company -
Business that specializes in examining and insuring title: the rights
and interests to real property.
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Title Report - See preliminary
title report.
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Title Search - Check of
public records relating to a parcel of real property to ensure that the seller is the legal owner
and that there are no liens or other claims outstanding.
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Total Expense
Ratio - See debt-to-income ratio. |
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Townhouse - Residential dwelling unit that consists of
two or more levels of living space and that is attached to one or more other
dwelling units. A townhouse can be a single-family home (sits on its
own land), a condominium (owner owns the unit but holds the land in
common with other owners) or an apartment (multifamily rental).
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Township - Division of land,
established by the federal government for surveying, that is six miles square
and contains 36 square sections of one square mile each. See also, rectangular
survey system.
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Township Line - Imaginary line used in surveying to measure distance from an established
base line and thus create the east-west lines of a grid for establishing a system of townships and sections. Each
township line is six miles apart and runs from east to west, parallel to the
base line. See also, base line and rectangular survey system.
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Trade Equity -
Value resulting from a real estate buyer giving real estate, or an asset other than real
estate, as a trade for all or part of the down payment for the property being
purchased. |
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Transfer of
Ownership - Assignment of ownership rights from one party to another. See
also, conveyance. |
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Transfer Tax -
Any government charge imposed on the value of property, goods or services at
the time of sale or transfer of ownership; a sales tax. See also, real
estate transfer tax. |
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Treasury Index
- Financial indicator showing results of auctions of U.S. Treasury bills and securities or
the daily yield curve from over-the-counter sales of U.S. Treasury securities;
used to determine interest rate changes for certain adjustable-rate mortgages.
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Triple Net Lease - Agreement
in which a tenant, or lessee, pays regular lease payments plus property taxes, insurance and maintenance costs for the leased property; contrast with gross lease. Sometimes referred to as "net net net" or "NNN." See also, double net lease and net lease.
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Triplex - Single building containing three
separate dwelling units.
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Trustee -
Fiduciary, or person of trust, who holds or controls property for the benefit of another
party. See also, fiduciary. |
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Trustee's Deed
- Written conveyance of title, or deed, issued by a trustee in a foreclosure
to the purchaser at auction. See also, bargain and sale deed. |
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Truth In Lending
Act - Federal law adopted in 1968 requiring consumer lenders to fully
disclose in writing the costs and conditions of loans and credit accounts.
Regulation Z, which the Federal Reserve Board adopted to implement the Act,
also requires certain disclosures in advertising for credit. In a mortgage
transaction, the lender or loan officer is required to provide a
Truth-In-Lending Disclosure within three business days of making loan
application. Because it's possible for loan costs to change while an
application is in process, lenders are also required to provide a final
Truth-In-Lending Disclosure at or before the signing of final loan documents.
These disclosures must include the amount financed, the finance charge, the
payment amount, the total of payments required, and the cost of the credit
calculated as an annual percentage rate. |
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Two-Step®
Mortgage - Fannie Mae-approved adjustable-rate mortgage where the interest
rate adjusts only once, at either five or seven years after inception, as
selected in advance by the borrower. A conventional, 30-year loan, the
Two-Step®
can be used to purchase a single-family home or plex (including a second home
or condo), and has a cap in the interest rate change of 6 percentage points. |
